The first bitcoin and ethereum Exchange Traded Product (ETP) priced in British pounds (GBP) is to be listed on one of Europe’s biggest stock exchange, Swiss SIX Exchange, on Tuesday.
“Expanding market participation is one of our core focuses,” Laurent Kssis, the Managing Director of the issuer 21Shares AG, said in a statement before further adding:
“As we already list our crypto ETPs in USD, CHF and EUR, it was only natural to add GBP. This opens up our institutional-grade crypto ETPs to all UK investors with access and connectivity to the SIX Swiss Exchange.”
UK’s circa $3 trillion economy can now access bitcoin or eth from their pensions or stock investment portfolios if their broker has access to Six Swiss Exchange.
That would allow them to diversify or hedge, with the ETP basically being a stockenized bitcoin or eth as any shares bought are converted into actual crypto with the ETPs being 100% backed according to their claims.
“This will give UK clients more choice by which they can access this emerging asset class with the reassurance of doing so via a regulated European exchange, which is a key factor raised by many institutional investors like us,” Charlie Morris, Chairman of UK based Bytetree said.
Financial advisors are now suggesting 1%-2% of the investment portfolio should be allocated to alternative asset classes after studies have shown portfolios with bitcoin in it perform better than otherwise.
More traditional investors however want crypto products to be in a structure they’re familiar with, like an ETP, in part because of regulatory requirements.
Britain now has that first crypto ETP product in pounds, so taking away from the equation any euro or dollar fluctuations.
“Reducing FX conversion costs by listing in key European currencies is an additional item of our strategy to widen market participation,” 21Shares says.
There may therefore be other currencies listed as Europeans now take the lead in this financial market by being the first to create the infrastructure for stock access to bitcoin and ethereum.